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OTTAWA — Prime Minister Mark Carney says retaliatory tariffs will hit the U.S. starting next month after Canada walked away from what he called a “bad deal.”
The U.S. introduced new 50 per cent tariffs on billions of dollars in Canadian exports on Saturday after trade talks failed.
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“We got attacked,” Carney told reporters on Parliament Hill Saturday when asked about the escalating trade war.
Carney suspended talks with the United States late Friday and summoned his negotiators back to Ottawa.
“We cannot accept what they’ve offered, and we will not give what they’ve asked,” he said.
Carney said Canada will match Washington’s new tariffs dollar-for-dollar and that the levies will be targeted at sectors such as steel, dairy, appliances, agricultural equipment, pulp and paper and electronics.
He said more details on those retaliatory measures, as well as supports for affected sectors, will be announced in coming days.
The counter tariffs are set to come into force on Sept. 8, the day after Labour Day.
We take this step reluctantly,” Carney said, adding that some of the measures will raise costs and reduce choice for Canadians.
The prime minister also said he recognized that some U.S. companies and states are “innocent bystanders” in the dispute, which he said is preventing Canada and America from “doing so much good that we could do together.”
“But at the same time, we take this step confident that it is in the best interest of Canada and that by rejecting a bad deal, by standing up for Canada, by focusing on what we can control, we will build Canada strong for all,” he said.
Carney is meeting virtually with his cabinet Saturday, followed by a meeting with premiers.
Carney said that the U.S., “at the last hours,” introduced efforts to restrict Canada’s ability to have other trade deals. He called the move a “power play,” that became an issue of sovereignty.
“We believe in free trade, with a partner of choice in many respects with countries around the world, and the Americans wanted to restrict that,” he said. “Unacceptable.”
Asked by a reporter if the U.S. was asking Canada to impose tariffs on other countries in conjunction with them, Carney said “there were elements of that in certain sectors.”
“There were elements where we would see the merit of that as part of a comprehensive deal that made sense for Canada,” he added.
Carney said the U.S. also added terms near the end of discussions to remove tariffs on some specific vehicles, specifically Ford trucks, as well as restrict Canada’s protections of language and culture.
“In effect, our sovereignty,” said Carney.
Carney said the government will outline Canada’s plan for counter tariffs and measures to support Canadian workers and businesses in the coming days.
“We’re going to hit back, and we are going to provide tariff protection where we can where it’s relevant,” he said. “We will do whatever it takes to support these businesses.”
U.S. Trade Representative Jamieson Greer said Friday that the U.S. and Canada had “declined” to finalize a tentative agreement, and laid the blame entirely on Canada.
“Despite the U.S. offer to Canada to receive the best treatment of any major exporter to our market, new demands and walk-backs of other commitments by Canada have upended the careful balance reached in the past days,” said Greer.
“In addition, Canada is continuing to maintain its prolonged retaliation against the United States, including, among other things, flat-out prohibitions on certain American goods and services.”
Greer told reporters the failed deal represented a “missed opportunity,” noting that the U.S. was offering significant tariff reductions on steel, aluminum, autos and lumber in exchange for concessions from Canada.
He said the deal also included an economic and national security partnership, as well as the announcement of formal Canada-U.S.-Mexico (CUSMA) agreement negotiations.
The Trump administration did not extend CUSMA in July. That triggered an annual rolling review of the trade deal for up to a decade, at which point it would expire if all three countries cannot come to an agreement for an extension.
Mexico and the United States have launched official CUSMA negotiations, but Ottawa and Washington have not started such talks.
Greer told Fox News Saturday that there are no new talks planned with Canada. He said the U.S. was moving forward with measures that respond to Canadian retaliation.
Canada-U.S. Trade Minister Dominic LeBlanc and chief negotiator Janice Charette had been in Washington for nearly two straight weeks trying to get to a deal, including multiple hours of talks with Greer on Friday.
Premiers united in response
Some of Canada’s premiers have already banded together with Carney following the announcement.
Saskatchewan Premier Scott Moe said in a social media post that the province supports Canada’s response.
“Saskatchewan has also been clear that any attempt by the United States to influence or place conditions on Canada’s trade relationships with other nations is a non-starter.
“Decisions about who Canada trades with must be made by Canada.
“Saskatchewan, more than any other province, is diversifying its trade to other countries, and that will not be compromised.
“For those reasons, the Prime Minister made the right decision to not accept an unfair and unreliable deal, and we support the Prime Minister’s decision to enact dollar for dollar counter-tariffs on targeted U.S products,” Moe said.
After days of silence, Ontario Premier Doug Ford said on social media late Friday that the prime minister has his “full support” for a strong response.
“As we fight to protect Canadian sovereignty and economic security, everything needs to be on the table,” said Ford. “Ontario is ready to do its part.”
British Columbia Premier David Eby said on social media that “our politeness should never be mistaken for weakness.”
“We’ll always defend ourselves,” he said. “We didn’t ask for this, but we’ll keep fighting for as long as it takes.”
Former Alberta Premier Jason Kenney also applauded the move, saying on social media that “Canada clearly made a serious, good faith effort to get greater stability and market access, and remains ready to find a fair, balanced agreement.”
‘But we are not cravenly surrendering in the face of constant economic and political aggression,” said Kenney. “Responding to the new U.S. tariffs with counter tariffs is exactly the right thing to do at this time.”
Susan Holt of New Brunswick said in a statement that her province stands strong and united with Team Canada as we fight for a fair deal.
“Now, more than ever, we need to double down on buying local and supporting New Brunswick businesses and workers.”
PEI Premier Rob Lantz also vowed on social media to continue working alongside the other premiers and the federal government, “to stand up for Canadian interests and make sure Prince Edward Island has a strong voice in the path forward.”
He added that the Team Canada approach has kept the country strong and united throughout negotiations, and Canadians need that same strength and unity now.
Alberta Premier Danielle Smith, on the other hand, said on social media she is “deeply disappointed” that Canada and the United States have not been able to reach a trade agreement.
“No one benefits from a trade war,” she said.
Smith also said she welcomed the federal government’s intention to provide relief for those businesses that are impacted.
“Alberta will continue to advocate for a strong tariff-free relationship between Canada and the U.S., and I will be urging the federal government to restart negotiations as soon as possible,” she said.
Business leaders speak out
Candace Laing, president and CEO of the Canadian Chamber of Commerce and member of the prime minister’s advisory committee on Canada-U.S. economic relations, said in a statement that this will be a “body blow to North American competitiveness in this self-defeating trade saga.”
“A whopping, non-absorbable tariff is not sustainable or viable for business,” she said.
“For a small Canadian exporter operating on tight margins, this isn’t an abstract trade dispute. It means looking at your orders, your payroll and your employees and asking what you can still afford.”
Laing said Americans will see their costs go up, while Canadians will see customers, investment and small businesses disappear.
Trump first threatened the new tariffs in July, and set a deadline of Aug. 19 to reach a deal with Canada on a number of issues. Shortly before that deadline, the president said he was pausing the planned tariffs while the two sides worked out the details of a trade deal.
The U.S. had cited a number of irritants to justify the threatened tariffs, including complaints about U.S. access to Canada’s dairy market and most provinces continuing to keep American alcohol off store shelves.
Canadian provinces pulled U.S. booze from store shelves last year after Trump imposed tariffs. The bans on U.S. liquor remain in place in all but Saskatchewan and Alberta.
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